By: Toni Ervianto, Graduated of the UI and one of the founders of the Center of Risk and Strategic Intelligence Assessment (Cersia)

Early in 2017 there was a big increase in a number of public services as a result of government policy, including rising fuel prices, administrative costs for the maintenance of vehicle registration, BPKB and electricity tariff. This decision received a mixed response from the public. Even a number of protestswere held by students on behalf of the All Indonesia Student Executive Board (BEM SI). They urged the government to evaluate the policies pursued by weighing the current state of society. This is reasonable considering the student is critically important force for democracy and being a voice for the people in expressing their aspirations. However, of course, for anyone who gives a response to the policies pursued by the government needs to be open and fully understand the background and substance of policy decisions. This is important in order to avoid erroneous perception that would be counterproductive for the interests of the masses.

Straighten the Understanding

The government's decision in raising the price of non-subsidized fuel is quite reasonable given the surge in world oil prices. Executive Director Refor Miner, Komaidi Notonegoro in Our Energy Discussions in the Office of the Press Council, Central Jakarta, on January 15^th, 2017, stated in world oil prices in 2017 will be higher than in 2016. In early 2015, oil prices fell to a level of US $ 44 per barrel, the decline in oil prices lowest occurred in February 2016, which reached US $ 26.2 per barrel. While the 2017 Oil prices rose about US $ 50-55 per barrel, and hence the need to make adjustments back Pertamina. According to him, the government is faced with two options, raising the price of fuel oil or let the balance sheet of PT Pertamina (Persero) eroded.

The government finally took steps to adjust to fluctuations in world oil prices. Referring SK Marketing Director of PT Pertamina No. Kpts-00/F00000/2017-S3 and 003/F00000/2017-S3 dated January 4^th, 2017, the new prices of fuel that have been adjusted for the period January to March 2017 is effective from 00.00 dated January 5, 2017. Non-subsidized fuel prices set up by Rp. 300, Pertamax to Rp. 8,050/liter of original Rp7.750/liter, Pertalite be Rp.7.350/liter from the previous Rp.7.050/liter. Pertamina Dex to Rp. 8,400 per liter for areas of Jakarta, Banten, and West Java, and Rp. 8,500/ liter for DI Yogyakarta, Central Java, and East Java. While Dexlite which became a new option for diesel products are set to be Rp7.200 per liter for the Java, Bali, and NusaTenggara.

The fuel price hike was not a populist decision, experience shows there is always a critical opinion of the public because of fears of a domino effect which is usually followed by a surge in the price of basic foods. This is understandable given the incomplete understanding of government policies. Naikhanya needs to be clarified that the non-subsidized fuel, while special assignment types of fuel price remained, for a premium of Rp.6.450/liter, diesel bersubsi ditetap Rp.5.150/liter, and kerosene Rp 2,500/liter. This shows that the responsibility of the government through subsidies for fuel consumed for the poor remains a government priority consideration. The increase in the price of non-subsidized fuel is not only avoids losses to the state, but also provide opportunities for countries to still have a source of revenue to fund the development of oil and gas industry, including subsidies for the underprivileged.

One of understanding also occurred with the removal of subsidies va 900 customers that have an impact on basic electricity tariffs are normal. It is suggested that the price of electricity rates go up so it will be a burden on society. According to the Director of the State Electricity Company (PLN), Sofyan Basir, during this time customers only pay Rp 900 va. 585/kilowatt hour (kWh), less than half the normal rate applicable, which is Rp. 1,352/kWh. Therefore, with the lifting of subsidies va 900, then the customer will pay the normal rates and the state have the opportunity to increase their income. Nevertheless, the government remains committed to provide subsidies for some customers 900 and 450 va va as public responsibilities to the disadvantaged households. With the enactment of the normal tariff for customers 900 va, then the government has the opportunity to enhance the development of electrical infrastructure for 12,000 villages, which until now has not been touched by electricity.

The fact that the government has lowered 12 groups electricity tariffs that follow the tariff adjustment mechanism (TA) in January 2017 it is not known by the public. The reduced rate because the declining price of Indonesian Crude Price (ICP) and the cost of production (BPP) although the rupiah weakened. The government established that electricity tariffs in January at low voltage (TR) to Rp. 1467.28/kWh, electricity rates in medium voltage (TM) to Rp. 1114.74/kWh, electricity rates in high voltage (TT) to Rp. 996.74/kWh, and electricity in dedicated service to Rp. 1644.52/kWh. Thus, since January 2017 has been a decrease in average tariff of Rp. 6 -to 12 classes electricity tariff.

Other policies also raises public reaction is the rising cost of obtaining a vehicle registration and reg. Initially growing misperception that as if the government raised the tax to 300% for motor vehicles. This has triggered a long queue at the various Police units’ offices because citizens want to pay off the vehicle tax before the policy is enforced. The increase is actually the administrative costs for the maintenance of vehicle registration and BPKB that had to be adjusted to the development and needs. The tariff increase was signed by President Jokowi on December 2^nd, 2016, and effective from January 6^th, 2017 as outlined in the Government Regulation No. 60 of 2016 concerning Types and Rates of Non Tax Revenue (non-tax revenues) that apply to the Police.

According to Amar Joey Boy, Head of Public Relations Police Headquarters, the government has set a target of non-tax revenues in the police riding around Rp 2 trillion, from Rp 2016 realization. 5.37 trillion to Rp. 7.406 trillion in 2017 after PP 60 2016 enacted. This increase is intended to increase state revenues from the sector of non-tax revenues are also to cover material prices rising, the rate increase is also aimed at improving service online system for driver's license, vehicle registration, and BPKB, as well as incentives for officers in an effort to minimize the practice of bribery and corruption in the sector Police public services.

The emergence of the misunderstanding related government policies should also be learning that during this socialization and political communication, social communication and mass communication have not been optimized to support the success of the policy. Lookahead, stakeholders in the field of public relations throughout the K/L including a range of communication and information technology in K/L needs to be tightened further cooperation in the success of any government policy.

Not Populist Step but Rational

If you only consider the political aspects of government breakthrough with three public policy at once the consequence of the increase in costs to be incurred in the community enjoy public service, then in fact the policy does not seem populist and could backfire for government support. The policy can be sabotage such a way by certain groups in order to delegitimize the government as that government is not sensitive to the condition of the community and find a way that instant in order to increase state revenues. This is potentially occur because, like two sides of a coin, there are always pros and cons in public policy. Moreover, if the critical group does not fully comprehend the substance of the government's policy.

The government's decision both in terms of rising prices of non-subsidized fuel, electricity and vehicle registration services and BPKB a rational decision that needs to be addressed positively. Jokowi administration courage to take unpopular policy this should be appreciated. In addition to these decisions can be a source of increased revenue an important country for financing development that are made by the government, these measures will also be a breakthrough to improve the quality of public services in various sectors. Equitable access network infrastructure development such as electricity, transport and energy are becoming increasingly apparent to be realized. Because of that, it needs a thorough understanding of the entire community and synergy with government policy makers. Populist policies should be viewed as a bitter pill that brings health to the nation, as well as learning for all to remind each other how the importance of energy security for the existence of this nation in the future.